Question

Exercise 3-2 Prepare T-Accounts [LO3-2, LO3-4) Jurvin Enterprises is a manufacturing company that had no beginning inventories. A subset of the transactions that it recorded during a recent month is shown below. a $75,500 in raw materials were purchased for cash. b. $71,600 in raw materials were used in production of this amount, $66,400 was for direct materials and the remainder was for indirect materials. c. Total labor wages of $150,200 were incurred and paid. Of this amount, $133,900 was for direct labor and the remainder was for indirect labor. d. Additional manufacturing overhead costs of $126,900 were incurred and paid. e Manufacturing overhead of $126,400 was applied to production using the company's predetermined overhead rate. f. All of the jobs in process at the end of the month were completed. g. All of the completed jobs were shipped to customers. h. Any underapplied or overapplied overhead for the period was closed to Cost of Goods Sold. Required: 1. Post the above transactions to T-accounts. 2. Determine the adjusted cost of goods sold for the period.

Answer 1

Answer:

Cash
Debit	Credit
Particulars	Amount	Particulars	Amount
		(a)	$        75500
		c)	$     150200
		(d)	$     126900

Raw Material
Debit	Credit
Particulars	Amount	Particulars	Amount
(a)	$    75500	(b)	$    71600

Work in Process
Debit	Credit
Particulars	Amount	Particulars	Amount
(b)	$    66400
c)	$ 133900
e	$ 126400	(f)	$ 326700

Finished Goods Inventory
Debit	Credit
Particulars	Amount	Particulars	Amount
(f)	$ 326700	(g)	$ 326700

Manufacturing Overhead
Debit	Credit
Particulars	Amount	Particulars	Amount
(b)	$      5200	e	$     126400
c)	$    16300
(d)	$ 126900	(h)	$        22000

Cost of Goods Sold
Debit	Credit
Particulars	Amount	Particulars	Amount
(g)	$ 326700
(h)	$    22000
		Ba;ance	$ 348700

Adjusted Cost of Goods Sold = 326700+ 22000= $ 348700